1. Field of the Invention
The invention relates to the field of financial transactions and more particularly to the field of automated securities transactions on a securities exchange with a display book and an auction market crowd.
2. Description of the Related Art
In auction exchanges for securities transactions, such as provided by the New York Stock Exchange, Inc. (NYSE), a round lot securities transaction (e.g., a limit or market order) is exposed to the auction market on the floor, where members of the crowd have an opportunity to compete for the transaction. This competition in the crowd for the transaction may improve the eventual execution price for the transaction. On the New York Stock Exchange, this exposure of the round lot transaction to the crowd occurs even when the order is received electronically on the specialist display book and there is an opportunity to execute the order against other electronic orders on the specialist display book. For some investors and institutions, there is interest in having a transaction execute at a known price, foregoing the opportunity for possible price improvement on the auction floor, and if the transaction will execute in a more timely fashion than is available with the traditional auction transaction, that is also desirable.
What is needed are methods and systems to automatically execute securities transactions against a quote, without the added time required for a floor auction, with the understanding that the transaction will not experience possible price improvement as it could from the auction market crowd.
The preceding description is not to be construed as an admission that any of the description is prior art relative to the present invention.